Success of Mahindra-Ssangyong Deal Hinges on Smooth Integration

The $341 million balance will be paid by Mahindra three days before a meeting with Ssangyong’s creditors early next year, whose consent is required before the deal officially can go through.

MUMBAI – Finalizing the acquisition of South Korea’s Ssangyong Motor Co. Ltd. by India’s Mahindra & Mahindra Ltd. last month was just the start.
The real success of the deal depends on a smooth integration of the two auto makers. A lot is at stake. Mahindra made an advance earnest money deposit of $37 million in November for its 70% stake, which is 10% of Ssangyong’s final equity-sale value.
The $341 million balance will be paid by the Indian company three days before a meeting with ...

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